Owner carry success?

2 Replies

Watsup BP- Looking to hear some success stories regarding seller financing. Have you ever done seller financing? Thinking this may be my best bet to starting out as I have money but no income to be able to get a loan. I have found a seller that has multiple properties and is looking to liquidate, owner will offer great loan terms. Using the BP calculator the property will cash flow, if permits are approved for the backyard cottage the deal would be a homerun. Typically how long do the loans last when doing a Owner finance? 15-30yrs possible? Anyone have advice on how to setup the financing to be more favorable to the buyer? Again this is my first owner carry deal any insight, tips, or past experiences would help me out as I get started. Thanks all!

I've sold 45-50 properties with seller financing and I've made good money on it. About 15 were wraps with underlying VA/FHA loans and the rest were properties we bought for cash and immediately flipped. I did mine with 30 year amortizations but 10 year balloons, which was particularly important as I got older.

As far as making it advantageous to the buyer, if I were the buyer I'd insist on no prepayments penalties from day one and the ability to prepay in almost any amount.

Thanks Frank, appreciate the insight. Why did you sell your properties owner carry? The property is free and clear so I think I can get creative on the financing but again this is my first owner carry deal. Not sure owner would accept a 30 year amortization but possibly if I also did a 10 year balloon. Any other insight on how to structure a owner carry deal that is advantageous to the buyer?

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